Foreigners in vietnam

Under a new decree on compulsory social insurance for foreigners working in the country issued by the government on October 15, all foreign workers with labor contracts of at least a year will be subject to compulsory social insurance. The decree will come into effect on December 1. Under the decree, the basic social insurance package will cover sickness, delivery, occupational diseases and accidents, retirement, and death just like for Vietnamese workers. From 2022 foreign employees have to pay a monthly premium of 8 percent of their income to the retirement and death fund. Employers will contribute 17.5 percent of their employees’ monthly salary, 3 percent to the sickness and maternity fund, 14 percent to the retirement and death fund, and 0.5 percent to the occupational diseases and accidents fund from January 1, 2022. This will put Vietnam on par with Thailand and the Philippines, while Singapore only requires citizens and permanent residents to pay social security. The draft … [Read more...] about Foreign workers set to come under social security net in Vietnam

According to the report of the Committee for National Defense and Security about the draft Law on network security, which was introduced in the meeting of the National Assembly on April 4, until now Google and Facebook have not had any official representative in Vietnam yet. As a result, regarding their online advertising activities, tax authorities can only collect tax from revenues earned by their Vietnamese partners / advertising agencies or direct service buyers which are based in Vietnam. Preliminary statistics show that in 2016, on behalf of Google, YouTube, and Facebook, domestic companies paid a tax amount of about VND46.86billion (approx. $2.05million), consisting of VND25.28billion ($1.1million) of value added tax and VND21.58billion ($946,138) of corporate income tax. In the first 9 months of 2017, on behalf of those companies, domestic companies also paid a tax amount of VND73.2billion ($3.2million), including VND39.08billion ($1.71million) value added tax and … [Read more...] about Tax payment of Google & Facebook in Vietnam considered not sufficient

Illustrative image (Source: VNA) Hanoi (VNA) – A total of 1,285 deals were made by foreign investors to contribute capital to and buy shares of Vietnamese businesses with total capital of 1.89 billion USD in the first quarter of this year, up 121.6 percent against the same period last year. The increase was attributed to the country’s more open investment environment as investors who want to contribute capital or buy shares do not have to register for investment licences like those conducting foreign direct investment (FDI) projects. Therefore, “many investors choose this type of investment, since they do not waste time to carry out investment procedures and quickly gain access to the Vietnamese market,” said Nguyen Mai, head of the Vietnam … [Read more...] about Foreigners keen on investing in Vietnam

LG Innotek Vietnam Hai Phong Co., Ltd at Trang Due industrial park (Photo: baodautu.vn) Hanoi (VNA) – Business confidence has increased among foreign direct investment (FDI) companies in Vietnam, according to a survey conducted by the Vietnam Chamber of Commerce and Industry (VCCI). The survey, which involved the participation of 1,765 FDI enterprises in 21 cities and provinces nationwide, showed that 13.2 percent of the firms increased their investment capital and 60 percent of them plan to scale up their business operation in Vietnam, which are much higher than the 2016’s figures of 11 percent and 50 percent. Prof. Dr. Edmund Malesky from the US-based Duke University affirmed that this is the greatest optimism in the FDI sector since 2011, attributing the results to the Vietnamese Government’s policies to reduce the burden on FDI companies, including Decree 78/2015/ND-CP and the Investment Law 2014. Online registration to set up business has been … [Read more...] about Foreign firms upbeat about business prospects in Vietnam

Vietnam’s GDP growth of 7.38 percent in the first quarter of 2018 was highlighted by the country's prime minister as a great economic achievement. GDP growth has reached a 10-year high thanks to impressive growth in the processing and manufacturing (14 percent), industry and construction (9.7 percent) and agricultural (4 percent) sectors, PM Nguyen Xuan Phuc told ministers and officials at a monthly government meeting on Monday. Inflation has been kept under control, and Vietnam’s Consumer Price Index (CPI) in the first quarter rose by 2.66 percent over the same period last year. Total retail sales of goods and services also increased 9.9 percent, compared to a 6.4 percent jump last year, Phuc said. "Nikkei has just announced this morning that Vietnam's Purchasing Managers' Index (PMI) in March reached 51.6 points. Although this figure is down from February, it still leaves Vietnam as one of the two countries in Southeast Asia standing over 50 points,” said the … [Read more...] about PM’s verdict on Q1 in Vietnam: Record growth, risks remain